On the back of the rise in steel prices in the Chinese market, steel production has been increasing in the prefecture-level city of Laiwu in the eastern Chinese province of Shandong. In October this year, steel output in Laiwu reached a record monthly level, exceeding the previous monthly record output set in April this year.
In October, pig iron production in Laiwu reached 1,637,800 mt, up 17.3 percent year on year. Meanwhile, crude steel output in Laiwu in the month in question rose by 16.1 percent to 1.578 million mt, while finished steel production came to 1,608,500 mt, marking an increase of 30.3 percent, both compared with the corresponding period of 2009.
The latest data issued by China's National Bureau of Statistics show that, in the first 11 months of 2010, China produced 577 million mt of crude steel, up 10.1 percent as compared with the January-November period of last year, while national finished steel output amounted to 730 million mt, rising by 15.7 percent year on year.
Propelled by the development of its steel industry, Laiwu's economic figures have indicated an improvement in the past few months. In October, the total industrial value-added output of large-scale enterprises in Laiwu reached RMB 3.39 billion ($51 million), rising by 13.72 percent year on year. In the first 10 months of 2010, the aggregate industrial value-added output figure was RMB 30.3 billon ($4.56 billion), up 13.85 percent compared with the corresponding period of 2009. In addition, the total net profit recorded by large-scale enterprises in Laiwu in January-October this year indicated a year-on-year increase of 36.93 percent to RMB 4.97 billion ($750 million).